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Draw the demand curve that Airbus thinks it faces. (7 marks)
b) Suppose the wool industry is perfectly competitive.
i) Draw 6 diagrams showing the equilibrium positions of a competitive firm in the short run and in the long-run. (24 marks)
ii) Assuming that a single firm is enjoying abnormal profits, draw another diagram to show the effects of the development of artificial fibres that reduces the demand for wool on the firm’s equilibrium position.
a) Find the firm's total revenue function TR (Q). (4 marks)
b) Find the expression for the firm's marginal revenue. (2 marks)
c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price? (4 marks)
how that the cost function for a firm with the constant returns Cobb–Douglas production function y = Az1^a z2^1-a is given C( p, y) = yp1^a p1^1-a B , where B is a function of A and a only. Sketch the cost curves. Derive the conditional input demands
If the consumer is spending all his budget on Y and X when B=36;P(price) of X is 2 and P(price) of Y is 6 find the budget constraint equation
Suppose that , firm under perfectly competition market produce two commodities X1 and X2 with corresponding prices birr 10 and birr 15 . If cost function of the firm is
C= 2x12 +x1x2+2x22 where x1 and x2 denote the level of output, then, determine the following questions.
i. Profit maximizing level of output x1 and x2
1)A profit maximizing Monopolist has the following total revenue and total cost function
TR=100q-2q²
TC=50+40q
Where q=output level
You are required to
1.derive the marginal cost
2.derive the marginal revenue
3.calculate the profit maximizing output level
4.determine the profit maximizing selling price.
The following diagram shows what happens if the supply of restaurant meals decreases due to an increase in the cost of producing restaurant meals - the equilibrium price increases and the equilibrium quantity declines. What you need to do is to calculate the price elasticity coefficient for restaurant meals for the price range R100 to R110.
Cars
Cakes
0
200
25
180
50
130
75
70
100
0
a. Draw the production possibilities curve. (10 Marks)
b. Suppose car production uses mainly machines and cake production uses mainly labor. Show what happens to the curve when the number of machines increases, but the amount of labor remains unchanged. (10 Marks)
If the inverse demand curve of profit maximizing monopolist is given as P =1200 − 2Q , and cost function as
C = Q3 − 61.25Q2+1528.5Q + 2000, find equilibrium output level, monopolist price, and profit.
discuss what causes difference in time in America, Europe and kenya
